NYSE$V

Visa · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Visa's Q1 2020 results reflected stable business growth and successful partnership building.

Visa Inc. reported a 10% increase in net revenues, reaching $6.1 billion, and GAAP and non-GAAP net income of $3.3 billion, or $1.46 per share, driven by growth in payments volume, cross-border volume, and processed transactions. The company also announced a new $9.5 billion share repurchase program and the acquisition of Plaid.

  • Net revenues increased by 10% to $6.1 billion.
  • GAAP and non-GAAP net income reached $3.3 billion, or $1.46 per share.
  • Payments volume, cross-border volume, and processed transactions showed strong growth.
  • A new $9.5 billion share repurchase program was authorized by the board of directors.

Headline financials

Total Revenue

$6.05B

Previous: $5.51B+10.0%
EPS (adj)

$1.46

Previous: $1.30+12.3%
Cross-Border Volume Growth

9.0%

Previous: 7.0%+28.6%
Transactions Processed

37.8B

Previous: 33.9B+11.3%
Free Cash Flow

$3.27B

Previous: $2.98B+9.9%
Net Income

$3.27B

Previous: $2.98B+9.9%
Operating Income

$4.02B

Previous: $3.72B+8.0%
Gross Profit

$4M

Previous: $5.51B-99.9%
Cash & Equivalents

$8.77B

Previous: $8.29B+5.8%
Total Assets

$74.8B

Previous: $71.7B+4.4%

Revenue & EPS history

Visa · Revenue · Quarterly

$6.05B

Q1 2020+10%vs Q1 2019
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Visa · $9.55B total across 5 segments · Q1 2020

  • Data Processing Revenue
    $2.86B+16.0%
  • Service Revenue
    $2.56B+9.0%
  • International Transactions
    $2.02B+9.0%
  • Client Incentives
    $1.75B
  • Other Revenue
    $365M+22.1%

Forward guidance

Visa provided financial outlook for fiscal full-year 2020, excluding the impact of the Plaid acquisition.

Tailwinds

  • Low double-digit growth in annual net revenues on a constant-dollar basis.
  • Mid-to-high single-digit increase in annual operating expense growth.
  • High end of 22.5% to 23.5% range for client incentives as a percentage of gross revenues.
  • Effective tax rate of 19% – 19.5%.
  • Mid-teens growth in annual diluted class A common stock earnings per share.

Headwinds

  • Approximately 1% decrease in annual net revenues due to foreign currency impact.
  • Approximately 0.5% decrease in annual net revenues due to acquisition impact.
  • Approximately 1% decrease in annual operating expense growth due to foreign currency impact.
  • 3% – 4% increase in annual operating expense growth due to acquisition impact.
  • Approximately 1% decrease in annual diluted class A common stock earnings per share growth due to foreign currency impact.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+2.0%

Avg return

30 days after

51%

33 / 65 earnings

Positive

+10.7%

Q1 2022

Best reaction

-7.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+2.6%+5.7%+5.9%
Q1 2026-1.2%-0.6%-3.5%
Q4 2025-2.4%-2.9%-3.6%
Q3 2025-0.1%-2.6%+0.1%
Q2 2025+1.2%+2.1%+6.9%
Q1 2025-0.4%+1.9%+5.7%
Q4 2024+2.1%+2.3%+10.7%
Q3 2024-5.1%-3.1%+0.1%
Q2 2024+1.0%+0.8%+0.7%
Q1 2024-1.4%+2.0%+4.4%
Q4 2023+2.3%-1.0%+9.6%
Q3 2023-1.5%-2.1%-0.5%
Q2 2023-2.0%-0.0%-4.0%
Q1 2023+2.9%+2.4%-2.4%
Q4 2022+6.6%+9.8%+11.0%
Q3 2022-1.8%-1.0%-2.1%
Q2 2022+2.0%+1.5%-0.7%
Q1 2022+10.7%+12.9%+6.5%
Q4 2021-7.7%-9.5%-13.1%
Q3 2021-1.3%-1.5%-7.9%
Q2 2021+1.4%+1.4%-1.5%
Q1 2021-0.9%+3.9%+8.9%
Q4 2020-2.7%-2.8%+11.0%
Q3 2020+0.8%-3.3%+7.2%
Q2 2020-3.4%-1.8%+7.4%
Q1 2020-2.9%-0.6%-11.3%
Q4 2019+3.8%+3.7%+4.8%
Q3 2019+1.5%+1.7%-0.3%
Q2 2019-0.4%+1.5%+0.6%
Q1 2019+0.0%+4.8%+10.7%
Q4 2018+1.0%-3.4%-4.5%
Q3 2018+1.8%-2.5%+3.0%
Q2 2018+4.8%+4.6%+8.3%
Q1 2018-2.7%-3.4%-2.8%
Q4 2017+1.3%+1.5%+3.3%
Q3 2017+1.4%+1.8%+4.3%
Q2 2017+1.6%+2.6%+3.0%
Q1 2017+4.4%+4.1%+7.7%
Q4 2016-0.4%-0.2%-3.4%
Q3 2016+0.7%-1.1%+1.4%
Q2 2016-2.5%
Q1 2016+5.0%
Q4 2015+0.4%
Q3 2015+3.9%
Q2 2015-2.3%
Q1 2015+3.5%
Q4 2014+9.2%
Q3 2014-2.9%
Q2 2014-4.8%
Q1 2014-0.8%
Q4 2013-3.7%
Q3 2013+3.2%
Q2 2013+4.1%
Q1 2013-1.5%
Q4 2012+4.0%
Q3 2012+3.2%
Q2 2012-5.4%
Q1 2012+5.1%
Q4 2011-0.2%
Q3 2011-1.4%
Q2 2011-0.5%
Q1 2010+1.3%
Q4 2010-1.9%
Q3 2010-0.5%
Q2 2010-2.1%

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